To amend the Internal Revenue Code of 1986 to clarify that certain options offered by tax-exempt organizations are not includible in gross income under section 457(f).

Amends the Internal Revenue Code to establish that options without a readily ascertainable fair market value offered by State and local governments and tax-exempt organizations are excluded from gross income.

[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1100 Introduced in House (IH)]







108th CONGRESS
  1st Session
                                H. R. 1100

  To amend the Internal Revenue Code of 1986 to clarify that certain 
options offered by tax-exempt organizations are not includible in gross 
                      income under section 457(f).


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 5, 2003

 Mr. Ramstad introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to clarify that certain 
options offered by tax-exempt organizations are not includible in gross 
                      income under section 457(f).

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. CERTAIN OPTIONS NOT SUBJECT TO SECTION 457(F) GROSS INCOME 
              INCLUSION RULE.

    (a) In General.--Paragraph (2) of section 457(f) of the Internal 
Revenue Code of 1986 (relating to exceptions) is amended by striking 
``and'' at the end of subparagraph (D), by striking the period at the 
end of subparagraph (E) and inserting ``, and'', and by inserting after 
subparagraph (E) the following new subparagraph:
                    ``(F) the grant of an option without a readily 
                ascertainable fair market value in connection with the 
                performance of services.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to options granted after December 31, 2002.
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